Qualified charitable distributions (QCDs), also known as IRA Charitable Rollovers, are the savviest way for individuals age 70.5 or older to use their IRAs to maximize their charitable impact to Loon Echo Land Trust.
Making a QCD is a great option to lower your income taxes while doing good for others and the earth. QCDs count toward your Required Minimum Distribution (up to $100,000), effectively lower your adjusted gross income and bring about many tax benefits.
A QCD can be made:
- When the IRA holder is age 70½ or older
- Directly from the IRA to LELT
- From a traditional or Roth IRA
- For those who make larger gifts – Deductibility limits do not apply to QCDs, which means the QCD can be made in addition to other charitbale contributions that may be limited by the annual maximum deductible percentage of income.
- For those who don’t itemize deductions – If QCDs are used as the funding source for charitable donations, the donor will receive tax benefits when there otherwise wouldn’t have been any.
Limitations on Distributions
- $100,000 mazimum per person per year
- Must direct IRA distribution from the IRA custodian
- Excludes SEP & Simple IRAs
Go to the IRS website for additional useful information on QCDs.
Please consult your tax or financial advisor about your particular situation in order to maximize your benefit.
Call 207-647-4352 and ask for Maggie or Matt if you have any questions.
Loon Echo Land Trust is a qualified public charity with EIN# 22-2966924.